Trade

India's apparel export sector stands on the cusp of significant growth following the announcement of a new free trade agreement (FTA) with the United Kingdom. The agreement, which removes tariff disadvantages and creates a level playing field for Indian garments, is expected to double the country’s ready-made garment (RMG) exports to the UK within the next three years. As a result, India will gain a competitive edge over its primary competitors, including China, Bangladesh, and Turkey, who currently enjoy duty-free access to the British market.

India and Belgium have been actively discussing ways to bolster their economic relationship, focusing on increasing bilateral trade, fostering industrial collaboration, and boosting investments in sectors such as semiconductors, clean energy, defense, and pharmaceuticals. The two countries also reviewed the progress of negotiations for the EU-India Free Trade Agreement (FTA), aiming to eliminate tariff and non-tariff barriers to market access.

Negotiations between India and the UK for a proposed Free Trade Agreement (FTA) are still ongoing, with unresolved issues delaying a final agreement. While the two countries had hoped to conclude talks in late April, differences over several key points have kept the discussions open. The primary issues under discussion include a sunset clause in the Bilateral Investment Treaty (BIT), the UK’s new carbon tax, and data localization concerns.

Despite India’s formal trade ban on Pakistan following heightened geopolitical tensions, a significant volume of goods—valued at approximately USD 500 million—is reportedly entering the Indian market through intermediary countries such as the UAE, Singapore, Indonesia, and Sri Lanka. These rerouted consignments include dry fruits, chemicals, textiles, and cement, repackaged to mask their Pakistani origin.

Union Home and Cooperation Minister Amit Shah has directed the National Cooperative Exports Ltd (NCEL) to set an ambitious export target of Rs. 2 lakh crore. The directive includes identifying new export opportunities for sugar, aromatic rice, organic cotton, and coarse grains. Additionally, Shah emphasized the need to expand the cooperative's operations to global markets like Africa and Myanmar and proposed a focus on high-demand agricultural products such as fresh vegetables and pulses.

In a significant move to enhance bilateral trade and sustainable logistics, India's Commerce Secretary, Sunil Barthwal, has initiated discussions with the Port of Rotterdam to establish a green and digital corridor for the export of green hydrogen to Europe. This collaboration is seen as a major step in advancing port modernisation, green shipping, and digitalisation of logistics. The move is aligned with India's Maritime Vision 2030, which seeks to modernise ports and improve logistics efficiency.

As the U.S. escalates its trade war with China, imposing a staggering 145% tariff on Chinese goods, Indian exporters are finding themselves at a unique crossroads. With the U.S. tariffs making it increasingly difficult for Chinese exporters to maintain direct shipments to the U.S., American sourcing firms are looking towards India as a strategic partner to circumvent these burdensome costs.

India's ability to remain competitive despite the global tariff environment is a testament to its growing economic stature, according to Union Minister Jyotiraditya Scindia. In a recent interview, Scindia emphasized that India's vast domestic market, scale advantages, and focus on innovation will continue to drive its competitiveness. The country is not only resilient in the face of rising tariffs but is also poised to become the third-largest economy globally by 2028.

Uttar Pradesh is setting ambitious goals to boost its export sector, aiming to triple its outbound shipments to over Rs 5 lakh crore by 2030. A new export policy, set for approval soon, will drive this goal by tapping new markets and products, while offering incentives such as capital subsidies and digital support. The policy will strengthen UP’s contribution to India’s overall export performance, fostering infrastructure development and supporting exporters with various financial aids.

India and the United Kingdom have taken significant steps forward in negotiations for their proposed Free Trade Agreement (FTA), aimed at deepening bilateral economic relations. During his two-day visit to London, Indian Commerce and Industry Minister Piyush Goyal met with UK officials to expedite discussions on this landmark deal. As the talks reach their final stages, both nations are working through the remaining hurdles to finalize terms that will ease trade barriers and foster mutual growth.